Buy Woolworths and this ASX 200 dividend stock

Analysts rated these income stocks as buys. Here's why they are bullish right now.

| More on:
Happy man working on his laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you wanting to make some new additions to your income portfolio this week?

If you are, it could be worth considering the two ASX 200 dividend stocks listed below. That's because analysts are tipping the two giants as buys right now.

Here's what sort of dividend yields you can expect to receive from them in the near term:

Woodside Energy Group Ltd (ASX: WDS)

The team at Morgans thinks that Woodside could be an ASX dividend stock to buy. It is a global energy company providing the energy the world needs to heat and cool homes, keep lights on, and enable industry.

Morgans thinks its shares are undervalued at current levels. It recently put an add rating and $33.00 price target on them. The broker said:

The tide is certainly out in terms of investor sentiment on WDS. Despite Brent oil trading in line with our long-term forecast, WDS' share price implies a near cycle-low oil price level. We do not see this as capable of being explained by WDS' growth profile (comfortably funded) or risks around non-core assets such as Browse. While the share price performance has been disappointing, supported by a strong balance sheet and high margins, we see WDS investors as capable of being patient. We maintain an ADD recommendation believing WDS offers attractive long-term value.

As for dividends, Morgans is forecasting fully franked dividends of $1.93 per share in FY 2024 and $1.61 per share in FY 2025. Based on its current share price of $24.63, this will mean dividend yields of 7.8% and 6.5%, respectively.

Woolworths Group Ltd (ASX: WOW)

Another ASX dividend stock that has been rated as a buy is Woolworths. It is Australia's largest retailer, operating the eponymous Woolworths supermarket chain, Big W, and a growing pet care business.

The company notes that each week, it aims to provide the best possible convenience, value, range and quality to the 24 million customers it serves across its network.

Goldman Sachs is a big fan of the company and has a buy rating and $40.10 price target on its shares. It said:

We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.

In respect to income, the broker is forecasting fully franked dividends of $1.08 per share in FY 2025 and then $1.19 per share in FY 2026. Based on its current share price of $32.70, this will mean yields of 3.3% and 3.6%, respectively.

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Person handing out $50 notes, symbolising ex-dividend date.
Dividend Investing

This 6.6% ASX dividend stock pays out consistent cash

Ten years of dividend increases look set to continue for the foreseeable future according to one broker.

Read more »

Dividend Investing

2 strong ASX dividend shares to buy in November

Bell Potter is saying good things about these stocks. But why?

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

$50,000 in savings? Here's how I'd aim for $1,700 a month in passive income

The share market can be used to generate significant income. Here's why I would do it.

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Dividend Investing

Analysts say Telstra and this ASX 200 dividend share are top buys

Let's see why analysts think income investors should be snapping up these stocks right now.

Read more »

Happy young woman saving money in a piggy bank.
Dividend Investing

Buy these ASX dividend stocks for 4% to 7% yields

Analysts think these buy-rated stocks will pay generous dividends in the near term.

Read more »

A woman in hammock with headphones on enjoying life which symbolises passive income.
Dividend Investing

I'd buy these 2 ASX dividend shares with high yields

These stocks can grow their payouts for the foreseeable future, in my view.

Read more »

Accountant woman counting an Australian money and using calculator for calculating dividend yield.
Dividend Investing

On the hunt for dividend income? This ASX 200 stock beats Woolworths and Coles shares

Woolworths and Coles shares are popular for passive income, but don’t overlook this ASX 200 stock.

Read more »

Group of successful real estate agents standing in building and looking at tablet.
Dividend Investing

1 ASX dividend stock down 25% to buy right now

I think this income business is a compelling buy right now.

Read more »